Han­jin shares dive on Euro­pean sale news

The Myanmar Times - - International Business -

SHARES in trou­bled South Korean ship­ping gi­ant Han­jin plunged 12 per­cent yes­ter­day af­ter the com­pany an­nounced plans to shut­ter its Euro­pean busi­ness, fu­elling fears it could be head­ing for liq­ui­da­tion.

The firm has ap­plied for court ap­proval to close all its units in more than 10 coun­tries in­clud­ing Ger­many, where it has its re­gional head­quar­ters, a spokesper­son said.

Han­jin – South Korea’s largest ship­ping com­pany – is seek­ing bank­ruptcy pro­tec­tion at home and in the United States af­ter cred­i­tors re­jected a plan to deal with a US$5.37 bil­lion debt load.

Its bank­ruptcy would be by far the largest in the his­tory of con­tainer ship­ping, which is suf­fer­ing its worst down­turn in six decades.

The com­pany ex­pects to start the clo­sure process this week af­ter ob­tain­ing ap­proval from the Seoul Cen­tral Dis­trict Court, the spokesper­son said.

Al­most 80 per­cent of Han­jin’s mar­ket value – about 950 bil­lion won (US$840 mil­lion) – has been wiped out in the past year as the firm’s fi­nan­cial woes deepen. –

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